Call Me!

You
designed the perfect ad, spent weeks negotiating with the Yellow Pages
representative and, finally, the new phone book is out. Your ad is working; it's
drawing calls from many prospective customers. It seems all is well, right? Not
quite.

The perfect self-storage prospect is someone with the Yellow Pages opened to
your ad and his hand on the phone. You could not ask for a better potential
customer. Statistically speaking, he's perfect: He lives nearby, has an
immediate need, can afford storage, and is taking action right now. Here's the
best part: He's dialing your phone number! Life is great--but only if your
manager answers his call.

The Hard Facts

Actual self-storage statistics indicate nearly one-third of the best possible
prospects will never even speak with a facility's manager. How can this be?
Maybe he's calling before you open or after you close. Perhaps the phone is
busy. Or maybe the manager is out fixing a roll-up door and the prospect is
getting the answering machine. Will he leave a message? It's not likely.
Research shows only two of 10 callers will leave a message. Will he call back?
Sorry. Chances are he will simply move his finger down the page to the next
listing and call your competitor.

The self-storage industry is unique in that more than 90 percent of its
business transactions occur over the phone. Think about it: If your phone lines
were somehow down, business would temporarily come to a halt. Nothing would be
more important than getting them operational again. The telephone, being the
primary vehicle of customer inquiry, is the lifeblood of your business. If the
phones are ringing, business is good. But given the importance of this
communcation tool, it's amazing how little most business owners know about their
telephone traffic.

How Much Do Lost Calls Cost You?

There are actually two types of losses. First, there is the loss of
advertising costs. This is simply calculated by adding up your yearly
advertising costs and multiplying by 30 percent. Far more expensive and not
quite as obvious is the cost of lost opportunity. This is essentially how much
money you could have made from missed prospects. The lost opportunity cost is
calculated by knowing how many prospects are missed, your average closing ratio
and the value of a new customer. For example:

You logged 140 new-prospect calls this month. The industry average indicates
you missed three of every 10 calls, therefore, you were actually called by 200
new prospects. You missed 60 calls. Your average closing ratio is 50 percent,
which means you could have converted 30 of these missed calls into paying
customers. Assuming a new customer is worth approximately $500 over the length
of his contract, the loss of 30 customers in a month equals the loss of $15,000.
Your actual numbers will vary slightly, but between lost advertising and
opportunity costs, the net result is staggering.

Prevention and Recovery

The good news is you can take some simple steps to reduce the number of lost
prospect calls. There is also a creative way to recover the lost prospects
themselves. First and foremost, there is nothing better than having a friendly,
well-trained manager answering the phone. All self-storage businesses have times
of the day when the phone rings the most. Make sure your manager is present in
the office during those times when the majority of calls come in. They should
always be available to answer the phone during those times.

Cordless Phones

One way to reduce missed calls is for the manager to keep a cordless phone
with him at all times when he is away from the office. Some self-storage
facilities are experiencing good results with the new 2.4 GHz multiline portable
phones, which have a much longer range than the older 900 MHz phones. It is
reported the reception is good around the yard, but degenerates inside a metal
building. A good system with one handset sells for about $500. It does seem a
bit expensive, but one additional customer will pay for it.

Cell Phones

For a time, cell phones seemed to be the solution. In this instance, the
manager can dial a code to forward the business line to the cell phone whenever
he leaves the office. The reception is good even within metal units. When the
manager returns to the office, he dials another code to release the forwarding.
Unfortunately, many store managers have reported the constant forwarding and
un-forwarding was problematic. In many cases, unbeknownst to the manager, calls
remained forwarded to the cell phone after it had been turned off.

Call Centers

If prospects receive no answer at the site, forwarding them to a call center
is another option. Call centers are better than answering machines--but only if
a live operator answers immediately. If the caller has to enter menu selections,
you can expect as many hang-ups as with a machine. Remember the prospect has an
immediate need and wants to speak with someone now. He has just heard four
rings, a click, another ring, and is now required to enter a menu selection.
There is a good chance he will simply call the next listing in the phone book.

Another problem identified with forwarding prospects to a call center is many
managers realize they now have a backup. Over time, they answer fewer phone
calls. This results in even more prospects hanging up before a live person
answers. Call centers work best for after-hours callers. In this scenario, the
prospect can be forwarded immediately, reducing the risk of him hanging up
before speaking with a salesperson.

Caller ID

While it is always best to answer phone calls personally, some calls will
inevitably be missed. The good news is there are basically two ways these lost
calls can be recovered. One is automated, and the other uses a manual system.
They both use a caller-ID service from the phone company.

In the manual system, the manager uses a small caller-ID display unit. He
simply checks the device when he returns to the office and writes down the name,
phone number and the time of the call on a form. This form then becomes the call
sheet. The manager simply places a return call to each prospect and says,
"Hello. This is John Doe from City Storage, and I see from my caller ID
that you tried to reach us. I apologize for missing your call. Is their anything
I can do for you?" When the manager is diligent making return calls, many
extra rentals will result.

Automated Services

One Atlanta company offers an automated system that recovers lost calls. This
service utilizes a proprietary device installed at each self-storage location.
The device monitors every aspect of incoming and outgoing calls (except the
conversation) and reports the information to a data center. There, the data is
compiled, analyzed and merged into a number of reports, graphs and maps. These
are sent to the owner on a regular basis. For example, graphs are compiled
indicating when call volumes are heaviest as well as when most calls are missed.
This information helps managers determine when outside activities should be
performed and part-time employees scheduled.

One of the most beneficial aspects of this service is a daily report of
missed calls. Each morning the site manager receives a list of calls missed
during the previous day. He can then make a courtesy call to each of the
prospects on the list. The service can also denote calls from existing customers
and vendors. Furthermore, it can cross- reference the missed-call list with the
outgoing calls made to check the manager's diligence in following up with missed
prospects.

Some managers are reluctant to make return calls to missed prospects. They
may feel it is intrusive or they just don't like the idea of placing them.
Self-storage managers claim that when they call missed prospects back, they are
generally receptive and appreciative the manager cared enough to call. According
to John Bauer, manager of a Shurgard facility, "We rent an extra two to
four units each month by calling prospects back. They often thank me for calling
them, even the ones who don't rent."

Take Action

It is essential you implement at least some of these ideas to reduce and
recover missed prospect calls. Don't let them slip through the wires. You have
already paid big money in advertising dollars to get these prospects to call, so
revenues from any prospects you can turn into paying customers goes directly to
the bottom line.

Keith Ruehle is the vice president of the Client Discovery Service, which
has provided sales, marketing and operational information for the self-storage
industry for more than three years. This unique service monitors all telephone
traffic to and from individual locations anywhere in the country. For more
information, call 800.240.4637; e-mail kruehle@callerid.com.